Tensho Electric Industries Co., Ltd. (6776) AI Stock Analysis

• Market Cap: ¥4.58B
• Dividend Yield: 1.87%
• Average Volume (3M): 11.29K
• Price to Earnings (P/E): 3.5
• Beta (1Y): 0.56
• Revenue Growth: -2.14%
• EPS Growth: 51.20%
• Country: JP
• Employees: 720
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Auto - Parts
• EPS (TTM): 12.99
• Shares Outstanding: 17,014,000
• 10 Day Avg. Volume: 9,610
• 30 Day Avg. Volume: 11,293
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥284.00
• Price Target Upside: 5.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: ¥284.00 ▲(5.97% Upside)

The overall stock score is driven primarily by a strong valuation, with a low P/E ratio and reasonable dividend yield suggesting the stock is undervalued. Financial performance is solid, with stable revenue growth and a strong balance sheet, though operational efficiency and free cash flow remain areas for improvement. Technical analysis indicates a neutral to slightly bearish short-term outlook, with weak momentum and potential oversold conditions.

Tensho Electric Industries Co., Ltd. Business Overview & Revenue Model

Company Description

Tensho Electric Industries Co., Ltd. (6776) is a Japanese company engaged in the manufacturing and sale of electronic components and devices. The company operates across various sectors, including consumer electronics, automotive, and industrial applications. Tensho Electric is known for producing high-quality electronic parts such as switches, sensors, and connectors, which are integral to numerous electronic devices and systems.

How the Company Makes Money

Tensho Electric Industries Co., Ltd. generates revenue primarily through the sale of its electronic components and devices. The company's key revenue streams include the supply of components to manufacturers in the consumer electronics, automotive, and industrial sectors. Tensho Electric benefits from long-term partnerships with major manufacturers, allowing it to maintain a steady demand for its products. Additionally, the company may engage in research and development activities to innovate and expand its product offerings, which can lead to new revenue opportunities. The company's ability to adapt to technological advancements and maintain high standards of quality plays a significant role in its financial performance.

Tensho Electric Industries Co., Ltd. Financial Statement Overview

Summary

Tensho Electric Industries Co., Ltd. demonstrates solid revenue growth and a stable financial structure. Despite challenges with operational efficiency and free cash flow, the company maintains a healthy balance sheet with manageable leverage. Continued focus on improving margins and optimizing capital expenditure will be crucial for sustaining long-term financial health.

Income Statement

The company has shown consistent revenue growth over the past years, with a notable increase from 2020 to 2025. Gross profit margin has remained relatively stable, indicating good cost management. However, EBIT and EBITDA margins have fluctuated, reflecting some operational efficiency challenges. Net profit margin shows a positive trend, suggesting improved bottom-line performance.

Balance Sheet

The balance sheet indicates a healthy equity position, with a solid increase in stockholders' equity over the years. The debt-to-equity ratio has been maintained at manageable levels, though there has been an increase in total debt for the latest year. The equity ratio is strong, highlighting a stable financial structure. However, the rising debt could pose future risks if not managed carefully.

Cash Flow

Operating cash flow has been robust, supporting the company's operations. However, free cash flow has been negative in recent years, reflecting high capital expenditures. The operating cash flow to net income ratio is stable, indicating efficient cash generation relative to net income. The company may need to focus on optimizing capital expenditure to improve free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.89B	27.89B	26.91B	23.90B	19.45B	15.56B
Gross Profit	4.29B	4.29B	4.32B	3.75B	2.87B	2.60B
EBITDA	3.28B	4.01B	3.73B	2.73B	2.25B	1.57B
Net Income	1.28B	1.28B	948.00M	612.00M	246.00M	158.00M
Balance Sheet
Total Assets	22.14B	22.14B	27.95B	27.56B	21.32B	17.32B
Cash, Cash Equivalents and Short-Term Investments	3.30B	3.30B	5.19B	5.50B	4.00B	2.89B
Total Debt	4.49B	4.49B	8.12B	7.84B	5.27B	4.29B
Total Liabilities	11.49B	11.49B	17.02B	18.04B	13.23B	10.18B
Stockholders Equity	10.64B	10.64B	9.25B	7.92B	7.06B	6.75B
Cash Flow
Free Cash Flow	0.00	-583.00M	-115.00M	-1.50B	567.00M	-971.00M
Operating Cash Flow	0.00	2.49B	2.69B	2.67B	2.43B	1.03B
Investing Cash Flow	0.00	-3.11B	-2.69B	-4.20B	-1.87B	-1.68B
Financing Cash Flow	0.00	619.00M	-622.00M	2.80B	545.00M	496.00M

Tensho Electric Industries Co., Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 268.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:6776, the sentiment is Positive. The current price of 268 is above the 20-day moving average (MA) of 264.40, above the 50-day MA of 265.88, and above the 200-day MA of 256.75, indicating a bullish trend. The MACD of 0.82 indicates Negative momentum. The RSI at 57.04 is Neutral, neither overbought nor oversold. The STOCH value of 84.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:6776.

Tensho Electric Industries Co., Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
7208	81 Outperform	¥5.07B	7.67		3.01%	0.05%	9.31%
6901	68 Neutral	¥4.66B	16.91		2.97%	-12.15%	-123.44%
6776	66 Neutral	¥4.58B	3.46		1.87%	-2.14%	51.20%
7284	66 Neutral	¥4.21B	7.32		4.15%	4.93%	―
Sector *	61 Neutral	$18.02B	12.77	-0.74%	3.01%	1.30%	-13.03%
6699	60 Neutral	¥4.85B	9.20		4.37%	0.86%	―
7214	54 Neutral	¥4.85B	7.89		4.45%	4.74%	-193.39%